Answer:
5500 units per month must be sold to earn the required profit
Explanation:
The target profit is the amount of profit that a business wants to earn. To calculate the target profit, we can use the break even analysis and include the factor for target profit under its formula and calculate the units and the dollar sales needed to earn the target profit.
In this case, the target profit is $50000 per month.
The break even in units = Fixed cost / contribution margin per unit
Contribution margin per unit = selling price per unit - variable cost per unit
To calculate units required for target profit, we will add the target profit to the fixed cost and divide by the contribution margin per unit
Target profit units = (fixed cost + target profit) / Contribution margin per unit
So,
Contribution margin per unit = 20 - 10 = $10 per unit
Target profit units = (5000 + 50000) / 10
Target profit units = 5500 units per month
A company that exists on different locations around the world I think.
Answer:
The expected rate of return on the market portfolio is 14%.
Explanation:
The expected rate of return on the market portfolio can be calculated using the following capital asset pricing model (CAPM) formula:
Er = Rf + B[E(Rm) - Rf] ...................... (1)
Where:
Er = Expected rate of return on the market portfolio = ?
Rf = Risk-free rate = 5%
B = Beta = 1
E(Rm) = Market expected rate of return = 14%
Substituting the values into equation (1), we have:
Er = 5 + 1[14 - 5]
Er = 5 + 1[9]
Er = 5 + 9
Er = 14%
Therefore, the expected rate of return on the market portfolio is 14%.
Answer:
b. 51,429 units
Explanation:
If x = Number of units
Net Income = Sales Revenue - Variable Cost - Fixed Cost
or
Net Income = Contribution Margin - Fixed Cost
where,
Net Income = $80,000
Contribution Margin per unit = $3.50
Fixed Cost = $100,000
Contribution Margin = Net Income + Fixed Cost
$3.50x = $80,000 + $100,000
$3.50x = $180,000
Dividing the above equation by $3.50 we get
x = $180,000 / $3.50
x = 51,429 units
Hence 51,429 number of units must be sold to generate the net income of $80,000.
Answer:
The activities of the Federal Reserve Board have the most direct influence on: bank interest rates, monetary policy (interest rates, credit, etc.)
